Summary:
The rise in flooding in the last few years, have made lots of houses uninsurable. This article looks at the new plans the government has agreed with insurance companies to enable more householders to purchase contents insurance . However, there will be some that still can’t aquire it.
Millions of homeowners will still be able buy essential insurance against flooding. It has been stated that insurers have achieved a deal with the government after they committed to a long-standing flood protection agreement.
Under the arrangement, insurance companies have guaranteed to provide protection to all properties judged to have a dangerof less than one in fifty five from flooding.
Providing procedures are in place to lessen the threat to an adequate level within the next four years, insurers will keep on making insurance available to existing domestic and small business customers. The Environment Minister said that to realise these proposals the government has committed itself to a lengthy 25 year campaign to develop flood defences.
The government proposes to develop fortifications and urge householders to safeguard their properties would mean that current statement of principles approved by insurers could terminate in 2014.
This arrangement comes over a year after floods struck areas of The Midlands, Hull Gloucestershire. These floods produced 184,000,185,000 claims for flood-soaked businesses, cars and houses. Payouts from insurance companies came to anexorbitant 6 billion pounds.
The spokesperson told BBC World Service Daily programme: “The insurance companies very reasonably said that it is important to have a long-standing scheme – 27 years is the figure that we are suggesting.
“We are examining surface water flooding, coastal flooding as well as river flooding, to check that the amplified investment that we have, is sustained in the long term.”
On the other hand, the Minister failed to say how many houses may fall outside the one in 75 danger band and be classed as not defendable against floods, saying just: “That is not for government to declare.”
He also said how necessary it was that the Environment Bureau makes use of its new influence to obstruct any new industrial or housing developments that may be in danger from flooding. He also said that life cover companies were now set to offer better premiums to property owners who take action to make their houses resistantagainst the possibility of swelling flood waters
He added: “What has changed is the climate change predictions that the experts are giving us - that the severe weather conditions are going to worsen in the next decade.”That demands a long-term approach … It is something we have been discussing with the insurance industry. They, quite understandably, want to have pledges that properties are protected and we, quite understandably, want to do that anyway.”
The Chairman of the Association of British Insurers (ABI) said the agreement would make sure flood fortification continued to be widely available to property owners.
“This deal is terrific news for everybody in peril of flooding,” he added. “We are pleased that the government accepts that a long-term investment strategy, properly funded, is the most proficient way to manage the growing flood danger.”
The ABI had previously advised that more than 450,000 properties could turn out to be uninsurable, unless more money is put into our flood fortifications.
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